The iconic Gwydyr Hotel in Betws y Coed has been sold to first time hoteliers for around £500,000.

The hotel – which had been in receivership – was sold by Colliers International on behalf of Dinorben Hotels.

New owners Rob and Dawn Farren have moved back to the area from Stratford-upon-Avon.

The couple plan a comprehensive refurbishment of the property, which has 20 en-suite bedrooms, a restaurant, bistro and lounge bar.

Neil Thomson, associate director of hotels at the North West office of Colliers International in Manchester, said: “This deal epitomises a steady improvement in market conditions, with a flurry of hotel and guesthouse transactions throughout North Wales over the past six months.”

Earlier this year Colliers International sold the Eagles at Llanrwst, sister hotel of the Gwydyr, and also owned by Dinorben Hotels, for an asking price of £280,000 to Peter Jones of the Swallows Falls Hotel in Betws y Coed.

Dawn Farren, who is originally from Llandudno and a former pupil of Ysgol John Bright, said: “I’m a former store manager of Tesco, I opened the Porthmadog store and stayed for two years but I always wanted to open my own business.

“We fell across the Gwydyr Hotel and it ticked all the boxes really, and Betws y Coed is such a beautiful place.

“The hotel is in the centre of the village, it’s a good size, and there are already three streams of revenue in place with the hotel, cafe and restaurant.

“It does need a lot of updating to bring it into the 21st century, though. It needs totally redecorating, new bathrooms and we want to put the open fires back.

“We won’t be attempting to make it into a boutique hotel, we want to offer it as a good value family hotel.”

Dawn and Rob, who are both in their 40s, have had a very warm welcome from the local community, although they only officially moved in on Monday.

“All 16 staff are still gainfully employed by us.

“The work we want to do will take around 12 months or so, but the hotel will not be closed during that time.

“Even though we’ve only been here a very short time, the local community have been incredibly welcoming.

“I think there is huge interest in the property and the community is delighted some money is going to be spent on the hotel as it has been in the heart of the village since Victorian times.”